申論題

           SVB is the largest bank failure event in March since 2008 financial crisis. Its strategy was to invest billions of dollars in long-term U.S. treasury bonds, when U.S. interest rates were at record lows in 2021.However, long-term bonds only pay out at maturity, and they lost value as the Fed began to raise interest rates in 2022 to fight inflation. In result, SVB had to sell the bonds at a staggering US$1.8 billion loss, which caused panic among investors and depositors. This led to a sharp sell-off of the bank’s shares, and a run by depositors. From this class, please answer the followings questions：